Regulated agreements made by a consumer credit or hire business whilst unlicensed cannot be enforced by the courts, similarly, for agreements for the services of a person carrying on ancillary credit business.
A validation order granted by the Office of Fair Trading makes these agreements enforceable by treating them as if they were made when the credit/hire business or ancillary credit business was licensed. This would allow the business to take steps to recover any commission, fees owed or other agreed payments, including court action.
A validation order will be required if you entered into a credit or hire agreement or carried on an ancillary business when you did not hold a Consumer Credit Licence covering the relevant Category of business.
You can only apply to validate agreements that were entered into with consumers if you were the:
Payment can be made by cheque, banker's draft or postal order and made out to Office of Fair Trading.
For more information on validations see:
The fees charged for a validation application depend on the number of agreements that you want to validate.
|Number of agreements||Fees|
|Up to 20||£500|
|From 21 to 200||£1000|
|From 101 to 200||£1250|
|From 201 to 300||£1500|
If you have more than 300 agreements to validate, we charge the above fee plus £250 per additional block (of up to 100 agreements) to a maximum of £20,000.
For more information on fees see General Notice 81 - consumer credit fees (pdf 81kb).
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